Abstract: In order to promote development of biomass densified biofuel CDM project in China, the paper made a study on small scale biomass densified biofuel CDM project development by using small scale methodology AMS.I.C and other methodologies based on a Beijing biomass densified biofuel factory. The paper mainly determined the project boundary, set the baseline scenario and main parameters and made a monitoring plan. The result showed that, a biomass densified biofuel factory with the production of 10 000 ton could reduce 13 688.22 t greenhouse gas emissions in one year; the emission reduction potential was great. It shows that the development of CDM projects in the area has good feasibility and great significance for China to achieve greenhouse gas emission reduction targets.